Practical Completion Inspection Reports - house and land

Hi everyone, I haven't been in here for a while - super busy. But I thought I'd share this as it was something that many new owners do not understand.

I have a new management in the middle suburbs of Brisbane - in a new townhouse complex. I am currently only looking after only one client in this complex...but as such I do feel sorry if the other agents are not pursuing this builder as I am. Those who know me professionally know how particular I am about this.

After spending hundreds of thousands of dollars, you don't have to accept a sub standard incomplete property.

Practical Completion Inspections:
This is the opportunity for the builders to meet with the owners or the owners representatives (property manager and/or licensed builder) to compile a defects list. This list then forms the basis of the works to be completed before handover/settlement.

The Practical Completion Inspection triggers the final invoice from the builder also. As such, time is of the essence (just before Christmas I had three properties with secured tenancies waiting for handovers that did not happen in time - super stressful!! I'm sure I gained my 2 kilos over Xmas as a result!!)

What the builder should do - rectify all these items and or provide the owner/property manager with a time frame if it cannot be rectified in time or is an item that should wait until the 6 month maintenance period. Now, most property managers do not even attend the PCI and if owners are interstate - it becomes harder to follow up.

Coming back to this development complex - I have been chasing the builders, solicitors, marketers... basically everyone...to make things move. Now you can understand, wee little property manager me, cannot do very much except make lots of noise and pester everyday. I'm a pretty nice person (unless you get on the wrong side of me) but if I strongly believe in something...I will stand my ground.

As I did with the construction supervisor yesterday. Normally, meetings like this should take about and hour if everything goes smoothly. This took two and a half hours and resulted in a very frustrated construction manager. I will ensure my client has all items noted repaired or made good, but he told me the other owners are going to wait until the 6 month. Honestly, it is because the other property managers have no idea how to deal with this and the owners not made aware.

For example: paint defects are cosmetic defects and should be attended to prior to tenancy. Two reasons, paint defects are cosmetic defects and does not fall under the builders warranty, I don't care who tells you otherwise, it doesn't...why?? Because, we go around dotting everything that requires attention....if you wait 6 months, not only will the dots be an eyesore and cause damage to the walls if kept on, or if removed, evidence of its original location becomes harder to determine. What stupid builder is going to repaint all the rooms when we have tenants in them??? Paint and plaster defects on corners and traffic areas...to be painted in 6 months time...if this builder doesn't turn around and blame tenants to try and get away with this...if the property managers do not have evidence, how can you argue?

I'll make sure my client has a completed unit to MY standard. I do feel sorry for the other owners in the complex if the completion is the same as in this unit and their agents are not pursuing them. It will affect the resale value of their property because a few poorly constructed/finished items will open a can of worms with inspectors looking for other items. Just poor.

I am trying to grow my business, so I do have to be very careful about not getting on the wrong side of builders, but I think fair is fair and they should take better care with their works. Investors have spent hundreds of thousands of dollars paid to professionals to build their investments...all I expect is a professional standard.

The list I had was exceptionally long, and the email I sent to the owner and marketer this morning was even longer - but thoroughly documented.

Recommendation - get a professional building inspector - someone like Geoff Schmidt from A1 building services in Brisbane - absolutely great because he will always make sure the builder finishes their work. It makes my job easier because Geoff knows his stuff so well. Pity it wasn't him that did the inspection it would make it so much easier for me! He has taught me a lot over the years also but there is nothing like peace of mind to ensure everything is properly followed through.